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American option

Definition of the noun American Option

What does American Option mean as a name of something?

noun

1. [finance] an option that can be exercised at any date between the issue date and the expiry date.

Printed dictionaries and other books with definitions for American option

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Asset Pricing Theory (2009)

An American option is a special type of option, which we formally define as follows. Let T denote the set of all stopping times, that is, the set of all mappings of the form τ : → {0, 1,...,T} ∪ {∞} such that {τ ≤ t} ∈ Ft for every time t. For any τ ∈ T, ...

Mathematical Finance: Theory Review and Exercises (2014)

From Binomial Model to Risk Measures by Emanuela Rosazza Gianin, Carlo Sgarra

An American Option is a contract giving the buyer the right to buy (Call) or sell ( Put) a financial underlying asset for a strike price K at every instant between the agreement date and the maturity. The main difference between American and ...

Stochastic Calculus for Finance I (2012)

The Binomial Asset Pricing Model by Steven Shreve

In contrast to the case for a European option, whose discounted price process is a martingale under the risk-neutral measure, the discounted price process of an American option is a supermartingale under this measure. The holder of this ...

The Concepts and Practice of Mathematical Finance (2003)

by Mark Suresh Joshi

American option An American option is an option that can be exercised at any time before expiry. See also European option and Bermudan option. Amortising notional An instrument has an amortising notional if the notional decreases during ...

Dictionary of Financial Risk Management (1999)

by Gary L. Gastineau, Mark P. Kritzman

See also American Window, Modified American Option. European Option, Japanese Option, Bermuda Option. Quasi-American Option, Deferred Payment American Option. American Window: A modified American-style option with an exercise ...

Dictionary of Financial Engineering (2001)

by John F. Marshall

American option An option that can be exercised at any time up to the time of its actual expiration. That is to say, American-type options are continuously exercisable by the option holder. This is in contrast to European-type options, which can ...

The Entrepreneur's Dictionary of Business and Financial Terms (2013)

by Khwaja Masoom

American Option: An option that may be exercised at any time up to and ...

Financial Lexicon (2004)

A Compendium of Financial Definitions, Acronyms, and Colloquialisms by E. Banks

DEFERRED PAYMENT AMERICAN OPTION An OVER-THECOUNTER AMERICAN OPTION that permits the seller to utilize option proceeds from the time the buyer EXERCISES the contract, until the original maturity of the option. In exchange ...

Dictionary of International Trade Finance Terms (2001)

by Mike Hammett

American option A currency option that can be exercised at any time prior to ...

A Dictionary of Finance and Banking (2014)

by Oxford University Press

American option See option. American Stock Exchange (AMEX) A former stock exchange in New York, on which second-tier securities were traded. Listing requirements on AMEX were less stringent than on the *New York Stock Exchange.

Encyclopedia of Optimization (2008)

by Christodoulos A. Floudas, Panos M. Pardalos

Exercise boundaries and efficient approximations to American option prices and hedge parameters.J Comput Finance 4:85-103 3.

A Dictionary of Economics (2016)

by Nigar Hashimzade, Gareth Myles, John Black

A European option can only be exercised on the agreed date whereas an American option can be exercised at any time until the agreed date. A put option gives the holder the right to sell at a preagreed price. This can be used to reduce risk ...

Routledge Dictionary of Economics (2013)

by Donald Rutherford

see AFL–CIO American option (G1) An OPTIONthatcanbe activatedbeforeitsexpiry date. American Stock Exchange (G2) Previously the New York Curb Market and then the New York Curb Exchange, tracing ...

Dictionary of International Investment and Finance Terms (2001)

by John Owen Edward Clark

American option An option whose buyer can exercise the right to take it up at any time before the expiry date. American Stock Exchange (AMEX) The New York stock exchange that deals in stocks and bonds of smaller companies. It is also ...

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